Market Insights

The New England City Whose Real Estate Scene Is Grabbing the Attention of Pension Funds and Foreign Lenders

Insurance and pension companies financing commercial properties tend to look for stable Class-A assets that aren’t likely to pose much of a risk. You’d think they’d find plenty of those in big gateway cities like New York City and Chicago, yet insurance and pension origination declined in those cities in 2017.

The place where those providers are dominating the commercial real estate finance scene is the Boston region, the home of such attractions as the New England Patriots, world-renowned universities like MIT and Harvard, the T, and the harbor famous for the (other kind of) tea – the sort that got tossed a few centuries back.

In the Massachusetts capital, the Teachers Insurance & Annuities Association of America was the top commercial real estate loan originator last year, CrediFi found in its 2017 Boston Lending Spotlight.

Boston – and its massive seaport development project – is also a draw for foreign lenders like Natixis. The French bank ranked as the No. 2 CRE loan originator in Boston for 2017, driven by its origination of a $480 million loan for Echelon Seaport at 145 Seaport Blvd., a 1.3 million-square-foot mixed-use development that will incorporate residential units and ground-floor retail when construction is completed in 2020.

Download the full Boston Lending Spotlight for 2017.

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